Diversified engineering conglomerate DMCI Holdings, Inc. booked a full-year core net income of P17.4 billion, up 164 percent from P6.6 billion last year and the highest in its history. 

Surging commodity prices, recovering electricity rates and higher construction accomplishments accounted for the spectacular growth. 

Including a nonrecurring income of P1 billion in 2021 mostly from deferred tax remeasurement under CREATE Law and nonrecurring loss of P708 million mainly from sales cancellations for a real estate project in 2020, DMCI Holdings saw its net income surge by 214 percent from P5.9 billion to P18.4 billion. 

“Nearly all of our subsidiaries grew triple digits in 2021 because of higher productivity and what we believe is the start of a commodities supercycle,” said DMCI Holdings chairman and president Isidro A. Consunji. 

Commodities, or raw materials such as coal and nickel, are said to be in a supercycle when their prices trade above their long-term price over a prolonged period. 

In 2021, Newcastle coal prices reached an all-time high of $269.50 in October while LME nickel hit a ten-year high of $22,145 in September. 

“This year, we expect extreme volatility in coal and nickel prices because of the ongoing crisis in Ukraine, economic sanctions on Russian and possible policy interventions of China and Indonesia,” added Consunji. 

For the fourth quarter alone, DMCI Holdings posted a 145-percent rise in core earnings from P2 billion to P5 billion. Meanwhile, net income climbed even higher at 152 percent from P1.9 billion to P4.9 billion. 

Earnings Breakdown 

Semirara Mining and Power Corporation contributed P9.2 billion, a 360-percent upswing from P2 billion following a 16-percent increase in coal sales, 71-percent jump in average coal selling prices and 49-percent hike in average electricity selling prices. 

Net income contributions from DMCI Homes more than doubled (127%) from P1.9 billion to P4.4 billion on higher revenue recognition from accelerated construction accomplishments. 

DMCI Mining recorded a 150-percent boost in contributions from P483 million to P1.2 billion on record-high shipments of nearly 2 million wet metric tons and a 40-percent increase in average nickel selling prices.

Contributions from DMCI Power hit P580 million, an 8-percent uptick from P537 million due to the combined effect of higher electricity sales and lower fuel costs because of the commercial operation of its 15MW Masbate thermal plant.

D.M. Consunji, Inc. grew its contributions more than three times (247%) from P109 million to P378 million owing to higher construction accomplishments and marginal pandemic-related expenses. 

Lower billed volume (-3%) and average effective tariff (-1%) because of COVID-19 restrictions translated to flat contributions from affiliate Maynilad Water Services, Inc. at P1.6 billion. 

Income from parent and others recovered by 122 percent from a net loss of P51 million to a net income of P11 million on the absence of expenses related to COVID-19.